K-beauty’s global lead will depend on original technology

South Korea’s cosmetics industry has overtaken the United States to become the world’s second-largest exporter, but its success may also make the market easier for foreign rivals to enter.

Cosmetics exports reached $11.4 billion last year, exceeding $10 billion for the first time. South Korea ranked third globally in 2024, behind the United States, but moved into second place a year later, with France still ahead.

The industry’s speed has been a major advantage. Companies can sometimes move from planning to product launch in as little as nine months, while reasonable prices have helped Korean products compete internationally. The ecosystem also brings together the manufacturing capabilities of Cosmax and Kolmar Korea, two leading companies in the global cosmetics original design manufacturer market, with independent brands that quickly identify new trends.

Distribution platforms such as Olive Young and Sillicon2 also form part of that network. Together, these companies and platforms have created an environment where a high-quality cosmetics product can be planned and launched with a good idea, even without the scale of a large established brand.

That openness now presents a risk. Overseas companies with strong financial resources can use ODM manufacturers to develop products, potentially reducing the entry barriers that helped build K-beauty’s growth. The article argues that maintaining global leadership will require South Korea to build and protect original technologies, not rely only on the efficiency of its existing ecosystem.